VA Loans - Guest Post By Lisa Kett Assarian Needham, Massachusetts
My parents took advantage of the VA loan in 1954 and bought their first home for $4,500
It is amazing to think of that number.
Many Sundays my parents took us to open houses. That is probably what got me started in real estate.
Then along my mother-in-law who was a real estate agent and a super one too. She was an inspiration.
So glad that this mortgage option is available to our veterans.
Lisa is someone I really trust and have worked with so much over my real estate career so I thought I would ask her to write a little blog and here it is for your reading pleasure.
A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs (VA).
The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry). The basic intention of the VA direct home loan program is to supply home financing to eligible veterans and to help veterans purchase properties with no down payment. To qualify for a VA loan, borrowers must present a certificate of eligibility, which establishes their record of military service.
The VA loan allows veterans 103.15 percent financing without private mortgage insurance (PMI). A VA funding fee of 0 to 3.15% of the loan amount is paid to the VA; this fee may also be financed. In a purchase, veterans may borrow up to 103.15% of the sales price or reasonable value of the home, whichever is less. Since there is no monthly PMI, more of the mortgage payment goes directly towards qualifying for the loan amount, allowing for larger loans with the same payment.
VA loans can allow veterans to qualify for loan amounts larger than traditional Fannie Mae/conforming loans.
The maximum VA loan guarantee varies by county. The maximum loan amount with no down payment is usually $417,000, although with a down payment this can go up to as much as $1,094,625 in certain counties. VA also allows the seller to pay all of the veteran's closing costs as long as the costs do not exceed 6% of the sales price of the home.
For more information on VA loans, or on loan qualification, please contact:
